Annual Adjustment of Civil Monetary Penalties To Reflect Inflation-2020, 1747-1750 [2020-00313]
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Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Rules and Regulations
FAS programs during such fiscal year;
or
(2) An audit that meets the
requirements contained in subpart F of
2 CFR part 200.
(c) A Participant or subrecipient that
is a for-profit entity or a subrecipient
that is a foreign organization and that
expends, during its fiscal year, a total
that is less than the audit requirement
threshold in 2 CFR 200.501 in Federal
awards, is exempt from requirements
under this section for an audit for that
year, except as provided in paragraphs
(d) and (f) of this section, but it must
make records available for review by
appropriate officials of Federal agencies.
(d) FAS may require an annual
financial audit of an agreement or
subaward when the audit requirement
threshold in 2 CFR 200.501 is not met.
In that case, FAS must provide funds
under the agreement for this purpose,
and the Participant or subrecipient, as
applicable, must arrange for such audit
and submit it to FAS.
(e) When a Participant or subrecipient
that is a for-profit entity or a subrecipiet
that is a foreign organization is required
to obtain a financial audit under this
section, it must provide a copy of the
audit to FAS within 60 days after the
end of its fiscal year.
(f) FAS, the USDA Office of Inspector
General, or GAO may conduct or
arrange for additional audits of any
Participants or subrecipients, including
for-profit entities and foreign
organizations. Participants and
subrecipients must promptly comply
with all requests related to such audits.
If FAS conducts or arranges for an
additional audit, such as an audit with
respect to a particular agreement, FAS
will fund the full cost of such an audit,
in accordance with 2 CFR 200.503(d).
khammond on DSKJM1Z7X2PROD with RULES
§ 1485.36 Suspension and termination of
agreements.
(a) An agreement or subaward may be
suspended or terminated in accordance
with 2 CFR 200.338 or 200.339. FAS
may suspend or terminate an agreement
if it determines that:
(1) One of the bases in 2 CFR 200.338
or 200.339 for termination or
suspension by FAS has been satisfied;
or
(2) The continuation of the assistance
provided under the agreement is no
longer necessary or desirable.
(b) If an agreement is terminated, the
Participant:
(1) Is responsible for using or
returning any CCC-provided funds,
interest, or program income that have
not been disbursed, as agreed to by FAS;
and
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(2) Must comply with any closeout
and post-closeout procedures specified
in the agreement and 2 CFR 200.343 and
200.344.
§ 1485.37 Noncompliance with an
agreement.
(a) If a MAP Participant fails to
comply with any term in its agreement
or approval letter, CCC may take one or
more of the enforcement actions in 2
CFR part 200 and, if appropriate, initiate
a claim against the MAP Participant,
following the procedures set forth in
this subpart. CCC may also initiate a
claim against a MAP Participant if
program income or CCC-provided funds
are lost due to an action or omission of
the MAP Participant. If any MAP
Participant has engaged in fraud with
respect to the MAP, or has otherwise
violated program requirements under
this subpart, CCC may:
(1) Hold such MAP Participant liable
for any and all losses to CCC resulting
from such fraud or violation;
(2) Require a refund of any assistance
provided to such MAP Participant plus
interest as determined by FAS; and
(3) Collect liquidated damages from
such MAP Participant in an amount
determined appropriate by FAS.
(b) The provisions of this section shall
be without prejudice to any other
remedy that is available under any other
provision of law.
1747
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 11, 300, and 302
49 CFR Parts 1, 5, 7, 106, 211, 389, 553,
and 601
RIN 2105–AE84
Administrative Rulemaking, Guidance,
and Enforcement Procedures
Correction
In rule document 2019–26672,
appearing on pages 71714 through
71734, in the issue of Friday, December
27, 2019 make the following correction:
§ 5.25
General.
On page 71726, in the second column,
in the footnotes, footnote 8 should read,
‘‘ 8 See Appendix A to ‘‘Memorandum
on the Review and Clearance of
Guidance Documents,’’ available at
https://cms.dot.gov/sites/dot.gov/files/
docs/regulations/328566/gen-counselmem-guidance-documentssigned122018.pdf.’’
[FR Doc. C1–2019–26672 Filed 1–10–20; 8:45 am]
BILLING CODE 1301–01–D
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 143
RIN 3038–AE82
§ 1485.38 Paperwork reduction
requirements.
Annual Adjustment of Civil Monetary
Penalties To Reflect Inflation—2020
The paperwork and recordkeeping
requirements imposed by this subpart
have been approved by OMB under the
Paperwork Reduction Act of 1980. OMB
has assigned control number 0551–0026
for this information collection.
AGENCY:
Dated: December 6, 2019.
Robert Stephenson,
Executive Vice President, Commodity Credit
Corporation.
In concurrence with:
Dated: December 6, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019–27965 Filed 1–10–20; 8:45 am]
BILLING CODE 3410–10–P
PO 00000
Commodity Futures Trading
Commission.
ACTION: Final rule.
The Commodity Futures
Trading Commission (Commission) is
amending its rule governing the
maximum amount of civil monetary
penalties to adjust for inflation. This
rule sets forth the maximum, inflationadjusted dollar amount for civil
monetary penalties (CMPs) assessable
for violations of the Commodity
Exchange Act (CEA) and Commission
rules, regulations, and orders
thereunder. The rule, as amended,
implements the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended.
SUMMARY:
This rule is effective on January
13, 2020 and is applicable to penalties
assessed after January 15, 2020.
FOR FURTHER INFORMATION CONTACT:
Edward J. Riccobene, Associate Chief
Counsel, Division of Enforcement, at
(202) 418–5327 or ericcobene@cftc.gov,
DATES:
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Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Rules and Regulations
inflation, with guidance from the
Director of the Office of Management
and Budget.5
Commodity Futures Trading
Commission, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990 (FCPIAA) 1
requires the head of each Federal agency
to periodically adjust for inflation the
minimum and maximum amount of
CMPs provided by law within the
jurisdiction of that agency.2 A 2015
amendment to the FCPIAA 3 required
agencies to make an initial ‘‘catch-up’’
adjustment to its civil monetary
penalties effective no later than August
1, 2016.4 For every year thereafter
effective not later than January 15, the
FCPIAA, as amended, requires agencies
to make annual adjustments for
U.S. Code citation
II. Commodity Exchange Act Civil
Monetary Penalties
The following sections of the CEA
provide for CMPs that meet the FCPIAA
definition 6 and these CMPs are,
therefore, subject to the inflation
adjustment: Sections 6(c), 6b, and 6c of
the CEA.7
III. Annual Inflation Adjustment for
Commodity Exchange Act Civil
Monetary Penalties
A. Methodology
The FCPIAA annual inflation
adjustment, in the context of the CFTC’s
CMPs, is determined by increasing the
maximum penalty by a ‘‘cost-of-living
Civil monetary penalty description
adjustment’’, rounded to the nearest
multiple of one dollar.8 Annual
inflation adjustments are based on the
percent change between the October
Consumer Price Index for all Urban
Consumers (CPI–U) preceding the date
of the adjustment, and the prior year’s
October CPI–U.9 In this case, the
October 2019 CPI–U (257.346)/October
2018 CPI–U (252.885) = 1.01764.10 In
order to complete the 2020 annual
adjustment, the CFTC must multiply
each of its most recent CMP amounts by
the multiplier, 1.01764, and round to
the nearest dollar.11
B. Civil Monetary Penalty Adjustments
Applying the FCPIAA annual
inflation adjustment methodology
results in the following amended CMPs:
Violations occurring on or after 11/02/2015
Penalty
amount in
2019 final
rule 12
CPI–U
multiplier
New adjusted
penalty
amount
Civil Monetary Penalty Imposed By The Commission In An Administrative Action
7 U.S.C. 9 (Section 6(c) of
the Commodity Exchange
Act).
7 U.S.C. 13a (Section 6b of
the Commodity Exchange
Act).
For any person other than a
registered entity 1.
Non-Manipulation or Attempted Manipulation.
$165,227
1.01764
$168,142
For any person other than a
registered entity 1.
For a registered entity 1 or
any of its directors, officers
or employees.
For a registered entity 1 or
any of its directors, officers
or employees.
Manipulation or Attempted
Manipulation.
Non-Manipulation or Attempted Manipulation.
1,191,842
1.01764
1,212,866
910,158
1.01764
926,213
Manipulation or Attempted
Manipulation.
1,191,842
1.01764
1,212,866
182,031
1.01764
185,242
1,191,842
1.01764
1,212,866
Civil Monetary Penalty Imposed By A Federal District Court In A Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c
of the Commodity Exchange Act).
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1 The
Any Person ...........................
Non-Manipulation or Attempted Manipulation.
Any Person ...........................
Manipulation or Attempted
Manipulation.
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
1 The FCPIAA, Pub. L. 101–410 (1990), as
amended, is codified at 28 U.S.C. 2461 note. The
FCPIAA states that the purpose of the FCPIAA is
to establish a mechanism that (1) allows for regular
adjustment for inflation of civil monetary penalties;
(2) maintains the deterrent effect of civil monetary
penalties and promote compliance with the law;
and (3) improves the collection by the Federal
Government of civil monetary penalties.
2 For the relevant CMPs within the Commission’s
jurisdiction, the Act provides only for maximum
amounts that can be assessed for each violation of
the Act or the rules, regulations and orders
promulgated thereunder; the Act does not set forth
any minimum penalties. Therefore, the remainder
of this release will refer only to CMP maximums.
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3 Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114–74, 129
Stat. 584 (2015) (2015 Act), title VII, Section 701.
4 FCPIAA Sections 4 and 5. See also, Adjustment
of Civil Monetary Penalties for Inflation, 81 FR
41435 (June 27, 2016).
5 FCPIAA Sections 4 and 5. See also, Executive
Office of the President, Office of Management and
Budget Memorandum, M–20–05, Implementation of
Penalty Inflation Adjustments for 2020, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Dec. 16, 2019) (2019
OMB Guidance) (https://www.whitehouse.gov/wpcontent/uploads/2019/12/M-20-05.pdf).
6 FCPIAA Section 3(2).
7 7 U.S.C. 9, 13a-1, 13b. Criminal authorities may
also seek fines for criminal violations of the CEA
PO 00000
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Fmt 4700
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(see 7 U.S.C. 13, 13(c), 13(d), 13(e), and 13b). The
FCPIA does not affect the amounts of these criminal
penalties.
8 FCPIAA Sections 4 and 5.
9 FCPIAA Section 5(b)(1).
10 The CPI–U is published by the Department of
Labor. Interested parties may find the relevant
Consumer Price Index on the internet. To access
this information, go to the Consumer Price Index
Home Page at: https://www.bls.gov/cpi/. Click the
‘‘CPI Data/Databases’’ heading, and select ‘‘All
Urban Consumers (Current Series)’’, ‘‘Top Picks.’’
Then check the box for ‘‘U.S. city average, All
items—CUUR0000SA0’’, and click the ‘‘Retrieve
data’’ button.
11 2019 OMB Guidance at 3.
12 84 FR 3103.
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Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Rules and Regulations
The FCPIAA provides that any
increase under the FCPIAA in a civil
monetary penalty shall apply only to
civil monetary penalties, including
those whose associated violation
predated such increase, which are
assessed after the date the increase takes
effect.13 Thus, the new CMP amounts
established by this rulemaking shall
apply to penalties assessed after January
15, 2020, for violations that occurred on
or after November 2, 2015, the effective
date of the FCPIAA amendment
requiring annual adjustments, the 2015
Act.
IV. Administrative Compliance
A. Notice Requirement
The FCPIAA specifically exempted
from the Administrative Procedure Act
(APA) the rulemakings required to
implement annual inflation
adjustments.14 ‘‘This means that the
public procedure the APA generally
requires-notice, an opportunity for
comment, and a delay in effective dateis not required for agencies to issue
regulations implementing the annual
adjustment.’’ 15 The Commission further
notes that the notice and comment
procedures of the APA do not apply to
this rulemaking because the
Commission is acting herein pursuant to
statutory language that mandates that
the Commission act in a
nondiscretionary matter.16
B. Regulatory Flexibility Act
The Regulatory Flexibility Act 17
requires agencies with rulemaking
authority to consider the impact of
certain of their rules on small
businesses. A regulatory flexibility
analysis is only required for rules for
which the agency publishes a general
notice of proposed rulemaking pursuant
to section 553(b) or any other law.18
Because, as discussed above, the
Commission is not obligated by section
553(b) or any other law to publish a
general notice of proposed rulemaking
with respect to the revisions being made
to Rule § 143.8, the Commission
additionally is not obligated to conduct
a regulatory flexibility analysis.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA),19 which imposes certain
requirements on Federal agencies,
including the Commission, in
connection with their conducting or
sponsoring any collection of
information as defined by the PRA, does
not apply to this rule. This rule
amendment does not contain
information collection requirements that
require the approval of the Office of
Management and Budget.
D. Consideration of Costs and Benefits
Section 15(a) of the CEA 20 requires
the Commission to consider the costs
and benefits of its action before issuing
a new regulation. Section 15(a) of the
CEA further specifies that costs and
benefits shall be evaluated in light of
five broad areas of market and public
concern: (1) Protection of market
participants and the public; (2)
efficiency, competitiveness, and
financial integrity of futures markets; (3)
price discovery; (4) sound risk
management practices; and (5) other
public interest considerations.
The Commission believes that
benefits of this rulemaking greatly
outweigh the costs, if any. As the
Commission understands, the statutory
provisions by which it is making costof-living adjustments to the CMPs in
Rule § 143.8 were enacted to ensure that
CMPs do not lose their deterrence value
because of inflation. An analysis of the
costs and benefits of these adjustments
were made before enactment of the
statutory provisions under which the
Commission is operating, and limit the
discretion of the Commission to the
extent that there are no regulatory
choices the Commission could make
that would supersede the pre-enactment
analysis with respect to the five factors
enumerated in Section 15(a) of the CEA,
or any other factors.
List of Subjects in 17 CFR Part 143
Civil monetary penalties, Claims.
For the reasons set forth in the
preamble, the Commodity Futures
Trading Commission amends part 143 of
chapter I of title 17 of the Code of
Federal Regulations as follows:
PART 143—COLLECTION OF CLAIMS
OWED THE UNITED STATES ARISING
FROM ACTIVITIES UNDER THE
COMMISSION’S JURISDICTION
1. The authority citation for part 143
continues to read as follows:
■
Authority: 7 U.S.C. 9, 15, 9a, 12a(5), 13a,
13a–1(d), 13(a), 13b; 31 U.S.C. 3701–3720E;
28 U.S.C. 2461 note.
■
2. Revise § 143.8(b) to read as follows:
§ 143.8 Inflation-adjusted civil monetary
penalties.
*
*
*
*
*
(b) 2020 Inflation adjustment. The
maximum amount of each civil
monetary penalty in the following
charts applies to penalties assessed after
January 15, 2020:
(1) For non-manipulation or
attempted manipulation violations:
TABLE 1 TO PARAGRAPH (b)(1)
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty description
10/23/2004
through
10/22/2008
10/23/2008
through
10/22/2012
10/23/2012
through
11/01/2015
11/02/2015 to
present
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
For any person other than a registered entity1.
For a registered entity1 or any of its
directors, officers or employees.
$130,000
$130,000
$140,000
$168,142
625,000
675,000
700,000
926,213
140,000
185,242
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Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act).
1 The
Any Person .......................................
130,000
140,000
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
13 FCPIAA
Section 6.
Section 4(b)(2).
15 2019 OMB Guidance at 4.
16 Lake Carriers’ Ass’n v. E.P.A., 652 F.3d 1, 10
(DC Cir. 2011).
17 5 U.S.C. 601–612.
14 FCPIAA
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18 5
U.S.C. 603(a).
U.S.C. 3507(d).
20 7 U.S.C. 19(a).
19 44
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Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Rules and Regulations
(2) For manipulation or attempted
manipulation violations:
TABLE 1 TO PARAGRAPH (b)(2)
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty description
10/23/2004
through
5/21/2008
05/22/2008
through
8/14/2011
08//15/2011
through
11/01/2015
11/02/2015 to
present
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
For any person other than a registered entity1.
For a registered entity1 or any of its
directors, officers or employees.
$130,000
$1,000,000
$1,025,000
$1,212,866
625,000
1,000,000
1,025,000
1,212,866
$1,025,000
$1,212,866
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a-1 (Section 6c of the
Commodity Exchange Act).
1 The
Any Person .......................................
$1,000,000
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC on January 8,
2020, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not
appear in the Code of Federal Regulations.
Appendix to Adjustment of Civil
Monetary Penalties for Inflation—
2020—Commission Voting Summary
On this matter, Chairman Tarbert and
Commissioners Quintenz, Behnam, Stump,
and Berkovitz voted in the affirmative. No
Commissioner voted in the negative.
[FR Doc. 2020–00313 Filed 1–10–20; 8:45 am]
BILLING CODE 6351–01–P
POSTAL SERVICE
39 CFR Part 111
New Mailing Standards for Domestic
Mailing Services Products
Postal ServiceTM.
ACTION: Final rule.
AGENCY:
On October 9, 2019, the Postal
ServiceTM filed a notice of mailing
services price adjustments with the
Postal Regulatory Commission (PRC),
effective January 26, 2020. This final
rule contains the revisions to Mailing
Standards of the United States Postal
Service, Domestic Mail Manual (DMM®)
to implement the changes coincident
with the price adjustments and other
minor DMM changes.
DATES: Effective January 26, 2020.
FOR FURTHER INFORMATION CONTACT:
Jacqueline Erwin at (202) 268–2158, or
Dale Kennedy at (202) 268–6592.
SUPPLEMENTARY INFORMATION: On
December 20, 2019, the Postal
VerDate Sep<11>2014
15:46 Jan 10, 2020
Regulatory Commission (PRC) found
that the price adjustments proposed by
the Postal Service may take effect as
planned. The price adjustments and
DMM revisions are scheduled to become
effective on January 26, 2020. Final
prices are available under Docket No.
R2020–1 (Order No.5373) on the Postal
Regulatory Commission’s website at
www.prc.gov.
USPS did not receive any comments
on the proposed changes.
List of Subjects in 39 CFR Part 111
Administrative practice and
procedure, Postal Service.
The Postal Service adopts the
following changes to Mailing Standards
of the United States Postal Service,
Domestic Mail Manual (DMM),
incorporated by reference in the Code of
Federal Regulations. See 39 CFR 111.1.
Accordingly, 39 CFR part 111 is
amended as follows:
PART 111—[AMENDED]
SUMMARY:
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$130,000
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1. The authority citation for 39 CFR
part 111 continues to read as follows:
■
Authority: 5 U.S.C. 552(a); 13 U.S.C. 301–
307; 18 U.S.C. 1692–1737; 39 U.S.C. 101,
401, 403, 404, 414, 416, 3001–3011, 3201–
3219, 3403–3406, 3621, 3622, 3626, 3632,
3633, and 5001.
2. Revise the Mailing Standards of the
United States Postal Service, Domestic
Mail Manual (DMM) as follows:
■
230
First-Class Mail
233
Prices and Eligibility
1.0
Prices and Fees
*
*
1.5
Presort Mailing Fee
*
*
*
[Revise the second sentence of 1.5; to
read as follows:]
* * * Payment of this fee does not
apply to qualified full-service mailings
(under 705.23.3.1a).* * *
*
*
*
*
*
240 Commercial Mail USPS
Marketing Mail
243
Prices and Eligibility
1.0
Prices and Fees
*
*
1.4
Fees
1.4.1
*
*
*
Presort Mailing Fee
[Revise the second sentence of 1.4.1;
to read as follows:]
* * * Payment of this fee does not
apply to mailers who present qualified
full-service mailings (under
705.23.3.1a).* * *
*
*
*
*
*
260 Commercial Mail Bound Printed
Matter
263
Prices and Eligibility
1.0
Prices and Fees
*
*
*
*
*
Mailing Standards of the United States
Postal Service, Domestic Mail Manual
(DMM)
1.2 Presorted and Carrier Route
Bound Printed Matter
*
*
1.2.5
200
Commercial Mail
*
*
PO 00000
*
*
Frm 00020
*
*
Fmt 4700
*
*
Sfmt 4700
*
*
*
*
*
Destination Entry Mailing Fee
[Revise the last sentence of 1.2.5; to
read as follows:]
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]]>Agencies
[Federal Register Volume 85, Number 8 (Monday, January 13, 2020)]
[Rules and Regulations]
[Pages 1747-1750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00313]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 143
RIN 3038-AE82
Annual Adjustment of Civil Monetary Penalties To Reflect
Inflation--2020
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (Commission) is
amending its rule governing the maximum amount of civil monetary
penalties to adjust for inflation. This rule sets forth the maximum,
inflation-adjusted dollar amount for civil monetary penalties (CMPs)
assessable for violations of the Commodity Exchange Act (CEA) and
Commission rules, regulations, and orders thereunder. The rule, as
amended, implements the Federal Civil Penalties Inflation Adjustment
Act of 1990, as amended.
DATES: This rule is effective on January 13, 2020 and is applicable to
penalties assessed after January 15, 2020.
FOR FURTHER INFORMATION CONTACT: Edward J. Riccobene, Associate Chief
Counsel, Division of Enforcement, at (202) 418-5327 or
[email protected],
[[Page 1748]]
Commodity Futures Trading Commission, 1155 21st Street NW, Washington,
DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act of 1990
(FCPIAA) \1\ requires the head of each Federal agency to periodically
adjust for inflation the minimum and maximum amount of CMPs provided by
law within the jurisdiction of that agency.\2\ A 2015 amendment to the
FCPIAA \3\ required agencies to make an initial ``catch-up'' adjustment
to its civil monetary penalties effective no later than August 1,
2016.\4\ For every year thereafter effective not later than January 15,
the FCPIAA, as amended, requires agencies to make annual adjustments
for inflation, with guidance from the Director of the Office of
Management and Budget.\5\
---------------------------------------------------------------------------
\1\ The FCPIAA, Pub. L. 101-410 (1990), as amended, is codified
at 28 U.S.C. 2461 note. The FCPIAA states that the purpose of the
FCPIAA is to establish a mechanism that (1) allows for regular
adjustment for inflation of civil monetary penalties; (2) maintains
the deterrent effect of civil monetary penalties and promote
compliance with the law; and (3) improves the collection by the
Federal Government of civil monetary penalties.
\2\ For the relevant CMPs within the Commission's jurisdiction,
the Act provides only for maximum amounts that can be assessed for
each violation of the Act or the rules, regulations and orders
promulgated thereunder; the Act does not set forth any minimum
penalties. Therefore, the remainder of this release will refer only
to CMP maximums.
\3\ Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114-74, 129 Stat. 584 (2015)
(2015 Act), title VII, Section 701.
\4\ FCPIAA Sections 4 and 5. See also, Adjustment of Civil
Monetary Penalties for Inflation, 81 FR 41435 (June 27, 2016).
\5\ FCPIAA Sections 4 and 5. See also, Executive Office of the
President, Office of Management and Budget Memorandum, M-20-05,
Implementation of Penalty Inflation Adjustments for 2020, Pursuant
to the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Dec. 16, 2019) (2019 OMB Guidance) (https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf).
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II. Commodity Exchange Act Civil Monetary Penalties
The following sections of the CEA provide for CMPs that meet the
FCPIAA definition \6\ and these CMPs are, therefore, subject to the
inflation adjustment: Sections 6(c), 6b, and 6c of the CEA.\7\
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\6\ FCPIAA Section 3(2).
\7\ 7 U.S.C. 9, 13a-1, 13b. Criminal authorities may also seek
fines for criminal violations of the CEA (see 7 U.S.C. 13, 13(c),
13(d), 13(e), and 13b). The FCPIA does not affect the amounts of
these criminal penalties.
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III. Annual Inflation Adjustment for Commodity Exchange Act Civil
Monetary Penalties
A. Methodology
The FCPIAA annual inflation adjustment, in the context of the
CFTC's CMPs, is determined by increasing the maximum penalty by a
``cost-of-living adjustment'', rounded to the nearest multiple of one
dollar.\8\ Annual inflation adjustments are based on the percent change
between the October Consumer Price Index for all Urban Consumers (CPI-
U) preceding the date of the adjustment, and the prior year's October
CPI-U.\9\ In this case, the October 2019 CPI-U (257.346)/October 2018
CPI-U (252.885) = 1.01764.\10\ In order to complete the 2020 annual
adjustment, the CFTC must multiply each of its most recent CMP amounts
by the multiplier, 1.01764, and round to the nearest dollar.\11\
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\8\ FCPIAA Sections 4 and 5.
\9\ FCPIAA Section 5(b)(1).
\10\ The CPI-U is published by the Department of Labor.
Interested parties may find the relevant Consumer Price Index on the
internet. To access this information, go to the Consumer Price Index
Home Page at: https://www.bls.gov/cpi/. Click the ``CPI Data/
Databases'' heading, and select ``All Urban Consumers (Current
Series)'', ``Top Picks.'' Then check the box for ``U.S. city
average, All items--CUUR0000SA0'', and click the ``Retrieve data''
button.
\11\ 2019 OMB Guidance at 3.
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B. Civil Monetary Penalty Adjustments
Applying the FCPIAA annual inflation adjustment methodology results
in the following amended CMPs:
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\12\ 84 FR 3103.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
U.S. Code citation Civil monetary penalty
description
Violations occurring on or after 11/02/2015
-----------------------------------------------
Penalty amount CPI-U New adjusted
in 2019 final multiplier penalty amount
rule \12\
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed By The Commission In An Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person Non- $165,227 1.01764 $168,142
the Commodity Exchange Act). other than a Manipulation
registered or Attempted
entity \1\. Manipulation.
For any person Manipulation or 1,191,842 1.01764 1,212,866
other than a Attempted
registered Manipulation.
entity \1\.
7 U.S.C. 13a (Section 6b of For a registered Non- 910,158 1.01764 926,213
the Commodity Exchange Act). entity \1\ or Manipulation
any of its or Attempted
directors, Manipulation.
officers or
employees.
For a registered Manipulation or 1,191,842 1.01764 1,212,866
entity \1\ or Attempted
any of its Manipulation.
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed By A Federal District Court In A Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... Non- 182,031 1.01764 185,242
the Commodity Exchange Act). Manipulation
or Attempted
Manipulation.
Any Person...... Manipulation or 1,191,842 1.01764 1,212,866
Attempted
Manipulation.
----------------------------------------------------------------------------------------------------------------
\1\ The term ``Registered Entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
[[Page 1749]]
The FCPIAA provides that any increase under the FCPIAA in a civil
monetary penalty shall apply only to civil monetary penalties,
including those whose associated violation predated such increase,
which are assessed after the date the increase takes effect.\13\ Thus,
the new CMP amounts established by this rulemaking shall apply to
penalties assessed after January 15, 2020, for violations that occurred
on or after November 2, 2015, the effective date of the FCPIAA
amendment requiring annual adjustments, the 2015 Act.
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\13\ FCPIAA Section 6.
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IV. Administrative Compliance
A. Notice Requirement
The FCPIAA specifically exempted from the Administrative Procedure
Act (APA) the rulemakings required to implement annual inflation
adjustments.\14\ ``This means that the public procedure the APA
generally requires-notice, an opportunity for comment, and a delay in
effective date-is not required for agencies to issue regulations
implementing the annual adjustment.'' \15\ The Commission further notes
that the notice and comment procedures of the APA do not apply to this
rulemaking because the Commission is acting herein pursuant to
statutory language that mandates that the Commission act in a
nondiscretionary matter.\16\
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\14\ FCPIAA Section 4(b)(2).
\15\ 2019 OMB Guidance at 4.
\16\ Lake Carriers' Ass'n v. E.P.A., 652 F.3d 1, 10 (DC Cir.
2011).
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act \17\ requires agencies with
rulemaking authority to consider the impact of certain of their rules
on small businesses. A regulatory flexibility analysis is only required
for rules for which the agency publishes a general notice of proposed
rulemaking pursuant to section 553(b) or any other law.\18\ Because, as
discussed above, the Commission is not obligated by section 553(b) or
any other law to publish a general notice of proposed rulemaking with
respect to the revisions being made to Rule Sec. 143.8, the Commission
additionally is not obligated to conduct a regulatory flexibility
analysis.
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\17\ 5 U.S.C. 601-612.
\18\ 5 U.S.C. 603(a).
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C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA),\19\ which imposes
certain requirements on Federal agencies, including the Commission, in
connection with their conducting or sponsoring any collection of
information as defined by the PRA, does not apply to this rule. This
rule amendment does not contain information collection requirements
that require the approval of the Office of Management and Budget.
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\19\ 44 U.S.C. 3507(d).
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D. Consideration of Costs and Benefits
Section 15(a) of the CEA \20\ requires the Commission to consider
the costs and benefits of its action before issuing a new regulation.
Section 15(a) of the CEA further specifies that costs and benefits
shall be evaluated in light of five broad areas of market and public
concern: (1) Protection of market participants and the public; (2)
efficiency, competitiveness, and financial integrity of futures
markets; (3) price discovery; (4) sound risk management practices; and
(5) other public interest considerations.
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\20\ 7 U.S.C. 19(a).
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The Commission believes that benefits of this rulemaking greatly
outweigh the costs, if any. As the Commission understands, the
statutory provisions by which it is making cost-of-living adjustments
to the CMPs in Rule Sec. 143.8 were enacted to ensure that CMPs do not
lose their deterrence value because of inflation. An analysis of the
costs and benefits of these adjustments were made before enactment of
the statutory provisions under which the Commission is operating, and
limit the discretion of the Commission to the extent that there are no
regulatory choices the Commission could make that would supersede the
pre-enactment analysis with respect to the five factors enumerated in
Section 15(a) of the CEA, or any other factors.
List of Subjects in 17 CFR Part 143
Civil monetary penalties, Claims.
For the reasons set forth in the preamble, the Commodity Futures
Trading Commission amends part 143 of chapter I of title 17 of the Code
of Federal Regulations as follows:
PART 143--COLLECTION OF CLAIMS OWED THE UNITED STATES ARISING FROM
ACTIVITIES UNDER THE COMMISSION'S JURISDICTION
0
1. The authority citation for part 143 continues to read as follows:
Authority: 7 U.S.C. 9, 15, 9a, 12a(5), 13a, 13a-1(d), 13(a),
13b; 31 U.S.C. 3701-3720E; 28 U.S.C. 2461 note.
0
2. Revise Sec. 143.8(b) to read as follows:
Sec. 143.8 Inflation-adjusted civil monetary penalties.
* * * * *
(b) 2020 Inflation adjustment. The maximum amount of each civil
monetary penalty in the following charts applies to penalties assessed
after January 15, 2020:
(1) For non-manipulation or attempted manipulation violations:
Table 1 to Paragraph (b)(1)
----------------------------------------------------------------------------------------------------------------
Date of violation and corresponding penalty
Civil monetary ---------------------------------------------------------------
U.S. Code citation penalty 10/23/2004 10/23/2008 10/23/2012
description through 10/22/ through 10/22/ through 11/01/ 11/02/2015 to
2008 2012 2015 present
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person $130,000 $130,000 $140,000 $168,142
the Commodity Exchange Act). other than a
registered
entity\1\.
7 U.S.C. 13a (Section 6b of For a registered 625,000 675,000 700,000 926,213
the Commodity Exchange Act). entity\1\ or
any of its
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... 130,000 140,000 140,000 185,242
the Commodity Exchange Act).
----------------------------------------------------------------------------------------------------------------
\1\ The term ``Registered Entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
[[Page 1750]]
(2) For manipulation or attempted manipulation violations:
Table 1 to Paragraph (b)(2)
----------------------------------------------------------------------------------------------------------------
Date of violation and corresponding penalty
Civil monetary ---------------------------------------------------------------
U.S. Code citation penalty 10/23/2004 05/22/2008 08//15/2011
description through 5/21/ through 8/14/ through 11/01/ 11/02/2015 to
2008 2011 2015 present
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person $130,000 $1,000,000 $1,025,000 $1,212,866
the Commodity Exchange Act). other than a
registered
entity\1\.
7 U.S.C. 13a (Section 6b of For a registered 625,000 1,000,000 1,025,000 1,212,866
the Commodity Exchange Act). entity\1\ or
any of its
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... $130,000 $1,000,000 $1,025,000 $1,212,866
the Commodity Exchange Act).
----------------------------------------------------------------------------------------------------------------
\1\ The term ``Registered Entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC on January 8, 2020, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Adjustment of Civil Monetary Penalties for Inflation--
2020--Commission Voting Summary
On this matter, Chairman Tarbert and Commissioners Quintenz,
Behnam, Stump, and Berkovitz voted in the affirmative. No
Commissioner voted in the negative.
[FR Doc. 2020-00313 Filed 1-10-20; 8:45 am]
BILLING CODE 6351-01-P
